July 12, 1948 Joint Installations in Middle May 7, 1946 Marine Transportation and

ADDENDUM

3037

B. THE MUTUAL DEFENSE ASSISTANCE PROGRAM, 1949-1951

[The Mutual Defense Assistance Act of 1949 (Public Law 329, 81st Congress, 1st Session; 63 Stat. 714) and the subsequent appropriation on October 28, 1949, of $1,314,010,000 in cash and contract authority for fiscal 1950 brought the Mutual Defense Assistance Program into being. Due to the turn of world events, and especially to the attack on the Republic of Korea, Congress amended the basic law to increase its coverage and effectiveness and to authorize its extension (Public Law 621, 81st Congress, 2d Session, September 26, 1950; infra, doc. 3), and made available an additional $5,222,500,000 through regular and supplemental appropriation_legislation for fiscal 1951 (Public Laws 759 and 843, 81st Congress, 2d Session; 64 Stat. 595 and 1044). The Mutual Security Act of 1951 (Public Law 165, 82d Congress, 1st Session, approved October 10, 1951; 65 Stat. 373) marked the end of a 2 year period during which the emphasis of United States assistance shifted gradually from economic rehabilitation to military assistance, began the effort toward integration of economic recovery and military assistance programs, and symbolized the reorientation of United States foreign policy with regard to the foreign aid programs.]1

2. ADMINISTERING AUTHORITY UNDER THE MUTUAL DEFENSE ASSISTANCE ACT OF 1949: Executive Order No. 10099, January 27, 1950 2

By virtue of the authority vested in me by section 404 of the Mutual Defense Assistance Act of 1949, approved October 6, 1949 (Public Law 329, 81st Congress), hereinafter referred to as the Act, and as President of the United States, it is hereby ordered as follows:

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1. (a) The Secretary of State is authorized and directed to perform the functions and exercise the powers and authority vested in the President by the Act, except by section 303, section 405, subsection (e) of section 406, clause 2 of subsection (b) of section 407, and subsection (b) of section 411 thereof.

(b) Within the scope of the authority delegated to him by this order, the Secretary of State shall (1) have responsibility and authority for the direction of the programs authorized by the Act, (2) make full and effective use of agencies, departments, establishments, and wholly owned corporations of the Government, with the consent of the respective heads thereof, in the conduct of operations under such programs, and coordinate the operations of such programs among them, and (3) advise and consult with the Secretary of Defense and the Administrator for Economic Cooperation in order to assure the coordination of

1 For the text of the Mutual Defense Assistance Act of 1949, see A Decade of American Foreign Policy, pp. 1356-1364. For detailed information on this period, see the four semiannual reports to Congress on the Mutual Defense Assistance Program, covering Oct. 6, 1949, through Oct. 9, 1951; H. Docs. No. 613 of the 81st Cong., 2d sess., Nos. 119 and 179 of the 82d Cong., 1st sess., and No. 352 of the 82d Cong., 2d sess.

2 15 Fed. Reg. 499.

3 A Decade of American Foreign Policy, pp. 1356-1364.

the mutual-defense-assistance activities with the national defense and

economic-recovery programs.

2. All assistance provided to recipient countries under the authority delegated by this order shall be in conformity with programs approved by the Secretary of State after consultation with the Secretary of Defense and the Administrator for Economic Cooperation. As provided in section 401 of the Act, no equipment or material may be transferred out of military stocks if the Secretary of Defense, after consultation with the Joint Chiefs of Staff, determines that such transfer would be detrimental to the national security of the United States or that such equipment or material is needed by the reserve components of the armed forces to meet their training requirements. The Administrator for Economic Cooperation shall advise the Secretary of State concerning the effect of programs approved by the Secretary of State under the authority delegated to him by this order upon the achievement of the purposes of the Economic Cooperation Act of 1948,' as amended, and of the purposes of the United States program of economic assistance in Korea.2

3. Funds appropriated or otherwise made available for the purposes of carrying out the portions of the Act pertinent to the authority delegated by this order may be allocated by the Secretary of State to any agency, department, establishment, or wholly owned corporation of the Government for obligation and expenditure in accordance with programs approved by the Secretary of State under such authority.

HARRY S. TRUMAN

3. ACT TO AMEND THE MUTUAL DEFENSE ASSISTANCE ACT OF 1949: Public Law 621 (81st Congress, 2d Session) July 26, 1950 (Excerpts) 3

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Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 101 of the Mutual Defense Assistance Act of 1949 is hereby amended to read as follows:

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SEC. 101. In view of the coming into force of the North Atlantic Treaty and the establishment thereunder of the Council and the Defense Committee which will recommend measures for the common defense of the North Atlantic area, and in view of the fact that the task of the Council and the Defense Committee can be facilitated by immediate steps to increase the integrated defensive armed strength of the parties to the treaty, the President is hereby authorized to

1 A Decade of American Foreign Policy, pp. 1299-1321.

2 See supra, pp. 2532-2533.

3 64 Stat. 373; 22 U.S.C. 1591 et seq.

A Decade of American Foreign Policy, pp. 1356–1364.

5 The North Atlantic Treaty entered into force Aug. 24, 1949. For the establishment of the North Atlantic Council and its Defense Committee, see the communiqué of the First Session of the North Atlantic Council, Sept. 17, 1949; supra, pp. 1594-1600.

furnish military assistance in the form of equipment, materials, and services to such nations as are parties to the treaty and request such assistance. Any such assistance furnished under this title shall be subject to agreements, further referred to in section 402, designed to assure that the assistance will be used to promote an integrated defense of the North Atlantic area and to facilitate the development of defense plans by the Council and the Defense Committee under article 9 of the North Atlantic Treaty and to realize unified direction and effort; and after the agreement by the Government of the United States with defense plans as recommended by the Council and the Defense Committee, military assistance hereunder shall be furnished only in accordance therewith.

SEC. 2. Section 102 of such Act is hereby amended by designating such section as subsection (a) and by adding thereto subsection (b) to read as follows:

(b) In addition to the amounts heretofore authorized to be appropriated, there are hereby authorized to be appropriated to the President for the year ending June 30, 1951, out of any money in the Treasury not otherwise appropriated, for carrying out the provisions and accomplishing the policies and purposes of this title, not to exceed $1,000,000,000.

SEC. 3. Section 104 of such Act is hereby amended to read as follows:

SEC. 104. None of the funds made available for carrying out the provisions of this Act or the Act of May 22, 1947,1 as amended, shall be utilized (a) to construct or aid in the construction of any factory or other manufacturing establishment outside of the United States or to provide equipment (other than production equipment, including machine tools) for any such factory or other manufacturing establishment, (b) to defray the cost of maintaining any such factory or other manufacturing establishment, (c) directly or indirectly to compensate any nation or any governmental agency or person therein for any diminution in the export trade of such nation resulting from the carrying out of any program of increased military production or to make any payment, in the form of a bonus, subsidy, indemnity, guaranty, or otherwise, to any owner of any such factory or other manufacturing establishment as an inducement to such owner to undertake or increase production of arms, ammunition, implements of war, or other military supplies, or (d) for the compensation of any person for personal services rendered in or for any such factory or other manufacturing establishment, other than personal services of a technical nature rendered by officers and employees of the United States for the purpose of establishing or maintaining production by such factories or other manufacturing establishments to effectuate the purposes of this Act and in conformity with desired standards and specifications.

1 The Greek-Turkish Aid Act of 1947; A Decade of American Foreign Policy, pp. 1257-1261.

SEC. 11. Section 404 of such Act is hereby amended to read as follows:

SEC. 404. The President may exercise any power or authority conferred on him by this Act through such agency or officer of the United States as he shall direct, except such powers or authority conferred on him in section 405, in clause (2) of subsection (b) of section 407, and in subsection (c) of section 408.

SEC. 12. (a) Section 408 (c) of such Act is hereby amended to read as follows:

(c) Whenever he determines that such action is essential for the effective carrying out of the purposes of this Act, the President may from time to time utilize not to exceed in the aggregate 10 per centum of the funds and contract authority made available for the purposes of any title of this Act for the purposes of any other title, or in the event of a development seriously affecting the security of the North Atlantic area for the purpose of providing military assistance to any other European nation whose strategic location makes it of direct importance to the defense of the North Atlantic area and whose immediately increased ability to defend itself, the President, after consultation with the governments of the other nations which are members of the North Atlantic Treaty, finds contributes to the preservation of the peace and security of the North Atlantic area and is vital to the security of the United States. Whenever the President makes any such determination he shall forthwith notify the Committee on Foreign Relations of the Senate, the Committees on Armed Services of the Senate and of the House of Representatives, and the Committee on Foreign Affairs of the House of Representatives.

(b) Section 408 (d) of such Act is hereby amended to read as follows: (d) Upon approval by the President, any currency of any nation received by the United States for its own use in connection with the furnishing of assistance under this Act may be used for expenditures for essential administrative and operating expenses of the United States incident to operation under this Act and the amount, if any, remaining after the payment of such expenses shall be used only for purposes specified by Act of Congress.

(c) Section 408 (e) of such Act is hereby amended to read as follows: (e) (1) The President may, from time to time, in the interest of achieving standardization of military equipment and in order to provide procurement assistance without cost to the United States, transfer, or enter into contracts for the procurement for transfer of, equipment, materials or services to: (A) nations eligible for assistance under title I, II, or III of this Act, (B) a nation which has joined with the United States in a collective defense and regional arrangement, or (C) any other nation not eligible to join a collective defense and regional arrangement referred to in clause (B) above, but whose ability to defend itself or to participate in the defense of the area of which it is a part, is important to the security of the United States: Provided, That, prior to the transfer of any equipment, materials, or services to a nation under this clause (C), it shall provide the United States with assurance that such equipment, materials, or services are

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